Finding the best credit cards for students can be a bit of a challenge. There are so many different options to choose from and most of them offer great perks. It’s easy to get caught up in the excitement of choosing a credit card after you’ve decided to apply. You look through the glossy advertisements and overspend on those items that seem like they won’t let you down. Then you get your card and make your monthly payments, thinking you’ve made the right choice. But have you really made the right choice?
You might think that applying for a student credit card would automatically qualify you for an inexpensive interest rate. If you’re young and trying to establish a good credit history, this could be true. But the rates offered by these companies may not be very fair. If your credit history is still developing and you don’t yet have a stellar payment history, these cards might not be the best way to go. Here are some reasons why.
One of the first things you should consider when it comes to student credit cards is their interest rates. When you apply for cards with low annual fees, a low interest rate sounds great. But wait until you see your interest rate after the annual fee has been added in. Then you might realize how much of a rip off the card issuer was. After all, they were able to charge you less without charging you more in annual fees.
Interest rates for student credit cards are based on your credit score. When you apply for cards, your application is matched with an approval and you might receive a higher interest rate based on your application. But did you consider the annual fee that will be tacked onto your monthly payments? The higher your score, the better!
Annual fees can add up quickly. If you have multiple student cards, you may find that your minimum payment each month is more than the interest you’ll save by avoiding annual fees. Also, if you pay your balance in full each month, you won’t owe any interest charges. So if you’re looking for credit cards for students that offer no annual fees, look for those that feature no balance transfer fees either.
The next thing you should consider is how available credit is. Some credit cards offer cash back or airline miles rewards for spending. Others will earn you rewards for just making purchases with your card. Before applying, read the terms of the card. See what other consumers have to say about the cards you’re considering.
See if there are any annual fees associated with the credit card. Most of them do, but just because there are no annual fees doesn’t mean you won’t have to pay them one time. The interest you pay on the cash back or airline miles reward might also be deductible, depending on your credit score. If you don’t spend much money on rewards, don’t include these charges when calculating your credit score. They’ll only be applied to the interest you end up paying anyway.
Finally, take a look at the annual percentage rates and the grace periods offered by the credit cards. A high interest rate is a warning sign that you need to be careful with this type of credit card. If you can, focus on finding the best credit cards for students that offer the lowest interest rate. Then you can use it to build a positive credit history.
Once you’ve found those cards that offer the best credit cards for students, look at how many card programs they offer. See if there are any added benefits offered in addition to just cash back or airline miles. Many credit cards for college students will allow you to make everyday purchases with the card. Look for cards that offer several different types of reward programs. If you use these everyday purchases to build a credit history, it won’t be long before you’ll be able to qualify for an unsecured loan.
Credit cards are great ways for college students to build a positive credit history. Use this opportunity to make everyday purchases. These will help you build a nice nest egg for your financial future. The best credit cards for students also give you flexibility and reward programs that you can really benefit from. You deserve edu mastercard rewards, especially when you consider all the extra features you can enjoy as a student.
The best credit cards for students are the ones that give you the most flexibility, reward programs, and travel rewards. Credit cards for studying abroad are one of my favourite ways to use credit. You can book airfare, stay at a hotel, rent a car, and even get cash back on most expenditures! If you’re planning your next trip, I suggest looking into a credit card that gives you good travel rewards, such as air miles, cash back, and/or other amenities.